Dynamic authentication system and methods for use with legacy terminals

ABSTRACT

In one embodiment, the present invention provides a method and communication device with an emulated mag stripe capability. Information is transmitted in the mag stripe data indicating that the communication device has chip capability as well. This information is used by a server on the back-end (acquirer, issuer, network) to take advantage of that chip capability. For example, additional fields can be used for security measures and communication over the telecommunications network with the device can be performed to provide a more secure communication with a terminal. In one embodiment, the additional information is provided in the service code, using a unique 3 digit code other than 2xx.

CROSS-REFERENCES TO RELATED APPLICATIONS

This application is a continuation of U.S. patent application Ser. No.15/608,121, entitled “Dynamic Authentication System and Methods for Usewith Legacy Terminals,” filed May 30, 2017, which is a continuation ofU.S. patent application Ser. No. 15/197,470, entitled “DynamicAuthentication System and Methods for Use with Legacy Terminals,” filedJun. 29, 2016, issued as U.S. Pat. No. 9,691,012 on Jun. 27, 2017, whichis nonprovisional patent application of Ser. No. 62/186,166 entitled“Systems and Methods for Digital Payments,” filed on Jun. 29, 2015, thedisclosures of which are hereby incorporated in their entirety.

BACKGROUND OF THE INVENTION

The present invention relates to dynamic authentication of a user deviceusing emulated mag stripe wireless transmission, and in particular tosmart phones or similar devices with transaction applications.

Credit, debit and other payment cards in the US are now issuing withboth an embedded chip and a mag stripe. Smart phones and other devicescan have the chip and/or an emulated mag stripe. Cards with a mag stripeand a chip use a service code (2xx) that indicates there is also chipcapability. There are, and will be for many years, various types ofPoint of Sale (POS) terminals. The main ones are as follows.

Legacy mag stripe terminal. With legacy mag stripe card readers, thereis no ability to switch to using the more secure chip for a transaction,even though the card or phone has such capability. Thus, the mag stripeor emulated mag stripe is processed as an ordinary mag stripetransaction. It would be desirable to make use of the dynamicauthentication capabilities of a chip on legacy mag stripe readers.

Combination chip card and swipe terminals. When the user swipes the magstripe in a Point of Sale (POS) reader with both, the reader detects a3-digit service code (xxx). If the service code is 1xx, that indicates amag stripe only card, and the card is processed accordingly. If theservice code is 2xx, that indicates the card has chip capabilities. Ifthe card has been swiped as a mag stripe, and a 2xx service code isdetected, the reader will display a prompt to the user to insert thecard so the chip can be read, which is a more secure transaction.

Contactless Terminal.

A contactless terminal works with smart phones and other devices withwireless Near Field Communication (NFC) and chip capability. They may ormay not support mag stripes, and thus support mag stripe emulation. Theterminal is constantly transmitting, and a phone with a paymentapplication will detect this transmission and respond to begin atransaction.

In typical payment systems using a smart phone or similar device, aconsumer enrolls with a mobile app running on a user's mobile device(e.g., cell phone, tablet computer, etc.). The enrollment processinvolves the user supplying a user's card information and userinformation. The user information can be used to create a mobile wallet.The card information can be used to communicate with the user'sbank/financial institution associated with the card (card Issuer). Sucha communication can involve one or more rounds of message exchanges forpurposes of identification and verification. Further, the communicationcan also include exchange of digital tokens for authentication. When theconsumer performs a transaction at a point of sale, the transaction canbe NFC-based or alternately, a non-NFC-based transaction. Anon-NFC-based transaction, for example, can be a magnetic stripetransmission.

Samsung's “Samsung Pay” service works with many existing magnetic strippayment terminals (except, for example, those that require detecting anactual card in the slot). If a terminal doesn't have NFC contactlesscapability, then using Samsung Pay service, it can leverage a MobileSecure Transmission (MST) transaction, which emulates a swipetransaction through the swipe reader on the terminal. That's analternative way to make a contactless transaction at a traditionalmagnetic stripe reader which allows a card is to be dipped in/swipedinside a slot. Apple Pay® and Google's Android Pay™, on the other hand,use contactless NFC technology. In addition to MST, Samsung Pay™ alsoprovides NFC-based transactions with POS terminals that are NFC-capable.Both Samsung Pay and Apple Pay leverage the power of tokenization, inwhich a user's card details are “provisioned” onto a smart device(without the card details being actually stored on the phone) and at nopoint is that card information given to the merchant as part of thetransaction.

Android Pay generates a 16 digit token (same length as a card number) inthe cloud, and transmits it to the phone, which then provides it to thePOS. Samsung Pay uses either NFC or mag stripe emulation—Magnetic SecureTransmission (MST), and thus can work with legacy readers. A 16 digittoken is provided, similar to Android Pay. A fingerprint or PIN isrequired to use the payment application. In spite of the extra securityprovided by Samsung Pay, the legacy card reader thinks it is a magstripe, and the receiving banking network treats it like a mag stripe.This means, under new regulations adopted in October 2015, the merchantis liable for fraudulent card use, since the merchant hasn't upgraded toa chip-reader POS.

More details are useful to understand the invention. The stripe on theback of a credit/debit card is a magnetic stripe, often called amagstripe. The magstripe is made up of tiny iron-based magneticparticles in a plastic-like film. Each particle is typically a tiny barmagnet about 20-millionths of an inch long. The magstripe can be“written” because the tiny bar magnets can be magnetized in either anorth or a south pole direction. There are three tracks on themagstripe. A magstripe reader can understand the information on thethree-track stripe. Each track is about one-tenth of an inch wide. TheISO/IEC standard 7811, which is used by banks, specifies: 1) Track oneis 210 bits per inch (bpi), and holds 79 6-bit plus parity bit read-onlycharacters, 2) Track two is 75 bpi, and holds 40 4-bit plus parity bitcharacters, and 3) Track three is 210 bpi, and holds 107 4-bit plusparity bit characters. Credit card issuers typically use only tracks oneand two for transactions. Track three is a read/write track (whichincludes an encrypted PIN, country code, currency units and amountauthorized), but its usage is not standardized among banks.

The format for track two, developed by the banking industry, is asfollows:

Start sentinel—one character

Primary account number—up to 19 characters

Separator—one character

Expiration date or separator—four characters or one character

Service Code—three characters

Card Discretionary data—enough characters to fill out maximum recordlength (40 characters total)

LRC—one character

The Card Discretionary data can include PIN data, CVV data, andadditional discretionary data. A chip card includes data that is similarto a magnetic stripe card, typically referred to as Track 2 and Track 1equivalent data. In particular, the layout for chip Track 1 and Track 2equivalent magnetic stripe data is similar to that of a magstripe card,with one notable difference, the replacement of some of the data fields(the issuer discretionary data) with dynamically introduced values. Thechip on the card allows calculation of a dynamic card verification value(dCVV) based on a card-unique derived key and a simple applicationtransaction counter (ATC) and potentially data from the terminal,whenever possible or applicable. The dynamic card verification value ispassed in the track 1 or track 2 equivalent data in the issuerdiscretionary data field and sometime even in the same location that wasused for the original card verification value. The applicationtransaction counter (ATC) is also inserted in the area reserved on thetrack layout for issuer discretionary data. The dynamic cardverification value enhances the security of the transaction versus thestatic card verification value/code or card ID (CVV/CVC/CID) used inmagnetic stripe transactions. The use of dynamic data in the transactionprevents replay attacks (no transaction can be done twice) and cardcloning or skimming (the card key never leaves the protection of thesmart card memory).

Traditionally, in a contactless mode, there can be two modes ofoperation, a Mag Stripe Data (MSD) mode and an EMV mode¹. In the MSDmode, following the interaction between the payment instrument and theterminal, the transaction is processed using the existing and legacymagstripe rail including the delivery of the track 1 data as a core partof the authorization request. Although the MSD mode is not the mostsecure mode, it nevertheless has a great benefit of easierimplementation and could be deployed with minimal changes on themerchant and the acquirer infrastructure. The MSD mode currently existsfor most of the payment networks implementation including Amex,Discover, MasterCard, Visa, JCB and Union Pay. ¹EMV (Europay MasterCardVisa), is a technical standard for smart payment cards and for paymentterminals and automated teller machines which can accept them. EMV cardsare smart cards (also called chip cards or IC cards) which store theirdata on integrated circuits rather than magnetic stripes, although manyEMV cards also have stripes for backward compatibility.

In the EMV mode, the chip solution uses additional data elementsincluding data from the terminal to calculate cryptographic values(cryptograms) that are intended to protect and secure the transactionbut nevertheless require the development of a new path to deliver theadditional data. It is for that reason that the EMV implementationrequires more significant changes on the merchant and the acquirerinfrastructure to support the EMV mode. The MSD mode uses what isusually being referred to as the dCVV (dynamic Card Verification Value)while the EMV mode uses the notion of the Cryptogram. The majority orthe contactless infrastructure deployed in the US is based on the MSDmode and hence as the U.S. migrates to EMV, the payments infrastructurewill need to continue to support contactless MSD for some period of timeto allow acceptance of existing contactless cards and devices, whileadding support for contactless EMV. Generally speaking, contactless EMVcards are also known as chip cards.

A POS terminal is equipped with a magnetic stripe interface and a chipinterface supporting contact or contactless. According to preferredstandards in the financial industry, a party that does not provide chipsupport takes liability for any resulting card-present counterfeit fraudlosses. If both parties do not support chip, existing rules apply, i.e.the liability is on the issuer. Thus, for example, if an issuer of acard provides chip support, but a merchant doesn't provide chip support,then the merchant takes liability. A merchant is required to comply withthe rules of the financial industry, and thus there is some incentivefor the issuer to move the liability of a transaction to a merchant.

The difference is between chip cards and magnetic stripe cards as far astrack data goes is the difference in the Service Code of these two typesof cards. The Service Code is a 3 digit number. In particular, theService Code for a chip-enabled card starts with a 2 indicating to theterminal reading the magnetic stripe that the card is chip-enabled andshould be treated accordingly if the terminal is able to support thechip rules. For magstripe only cards, the Service Code starts with a 1.

The Service Code can thus be represented as 1XX or 2XX. If a servicecode of 1XX is detected, the data will be forwarded as mag stripe data,which has a lower level of security. If a 2XX code is detected by a POSthat supports a chip reader, additional data can be read to improve thesecurity of the data.

The 2XX Service Code thus indicates a more secure transaction becauseeither a secure element is present (Apple phones) or the phone receiveskeys from a server and has other restraints to make the transmissionmore secure (Android, Samsung phones). A secure element (SE) is a tamperresistant Smart Card chip that facilitates the secure storage andtransaction of payment and other sensitive credentials, e.g., a secureelement stores tokens, keys, and chip data. A secure element card can beused in both a contactless and a contact mode. A secure element utilizesuniquely-derived cryptographic keys for providing security totransactions. A secure element can be included within a debit or creditcard. In some scenarios, a secure element can also be included within amobile phone, e.g., as a part of a NFC stack inside a mobile phone. Insome other elements, a secure element can be included within a chipcard. Thus, a payment device can be any electronic device with anembedded chip, e.g., a chip card, a tablet, a watch, a wearableelectronic device, a mobile phone, etc.

HCE (Host Card Emulation), enables NFC devices to perform contactlesstransactions in card emulation mode without a secure element. Thepayment credentials and payment application are stored, like otherapplications, on the phone but not in a secure element. HCE allows theNFC controller to route communication from the contactless reader or POSterminal to an HCE service on the mobile device's host CPU. In HCE, thepayments application resides on the phone's operating system andinteracts with the cloud system and the NFC controller directly. Thereis no need for a card issuer to use SIM or other secure element formaking contactless NFC mobile payments.

MST (Magnetic Secure Transmission) generates an alternating currentthrough an inductive loop of changing magnetic fields. The signalreceived from the device emulates the same magnetic field change as amagnetic stripe card when swiped across the same read head. In order tokeep the transaction secure, MST only exists during the transmissionprocess. MST does not require merchants to make changes to theirexisting payment systems.

BRIEF SUMMARY OF THE INVENTION

In one embodiment, the present invention provides a method andcommunication device with an emulated mag stripe capability. Informationis transmitted in the mag stripe data indicating that the communicationdevice has chip capability as well. This information is used by a serveron the back-end (acquirer, issuer, network) to take advantage of thatchip capability. For example, additional fields can be used for securitymeasures and communication over the telecommunications network with thedevice can be performed to provide a more secure communication with aterminal. In one embodiment, the additional information is provided inthe service code, using a unique 3 digit code other than 2xx.

In one embodiment, an MST transmission is attempted by the phone uponlaunch of a payment application. A legacy mag stripe terminal will sendthe data to the server. A terminal supporting both mag stripe and chipwill normally read the service code, and tell the user to insert thechip card if there is a swipe with a service code (2xx) that indicates achip capability. Since the service code of this embodiment does notbegin with a “2,” the terminal will not make such a prompt and insteadwill send the data to the remote server. A contactless terminal withouta mag stripe reader will not detect the emulated mag stripe, but willsend an initiation message to attempt to initiate communication with thepayment application on the user device. Upon detection of such aninitiation message, the payment application will discontinue the magstripe emulation, and start an NFC communication with the terminal.

In one embodiment, the emulated mag stripe includes traditional magstrip data plus dynamic authentication data. In particular, dynamic cardverification value (dCVV) based on a card-unique derived key and asimple application transaction counter (ATC) are included.

In one embodiment, a request for authorization of a MST transaction issent to the user's phone. In the absences of a confirmation from theuser, it is assumed the token was compromised and no authorization willbe provided. Thus, a sniffing of the token, similar to mag stripeskimming, will be defeated. Because the user is using the phone for theMST transaction, there is little risk the user will not have the phoneor not see and respond to the challenge sent to the phone, as might bethe case for a card transaction. In one embodiment, the firsttransaction with a token is allowed without a challenge, but if there isa subsequent request with the same token, the second attempt is blocked.Alternately, a passive verification can be used, such as requiring thepayment application (or wallet) in the phone to send location, time orother data that can be correlated with the location and time or otherdata received from the POS device requesting authorization.

In one embodiment, where a request for authorization comes from atransit terminal, the entry is allowed without authorization to allowtimely entry. The token includes or is mapped to the user's phonenumber, allowing a challenge to the phone while the user is in thetransit system, or location-based or other passive verification. Thetoken is subsequently authorized, and if denied, the card number is puton a black list to deny departure from the transit system.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a block diagram of an electronic communication systemaccording to one embodiment of the invention.

FIG. 2 is a flow chart illustrating the interaction with mag stripeterminals and issuers according to one embodiment of the invention.

FIG. 3 is a flow chart illustrating the interaction with a contactlessterminal and issuers according to one embodiment of the invention.

FIG. 4A is a diagram of the mag stripe track 2 data layout.

FIG. 4B is a diagram of a transit terminal communication according to anembodiment of the invention.

FIG. 5 is a diagram of a computer system for implementing a user device,merchant terminal and/or issuer and acquirer servers according to anembodiment of the invention.

DETAILED DESCRIPTION OF THE INVENTION

FIG. 1 is a block diagram of an electronic communication systemaccording to one embodiment of the invention. A smartphone 110 includesa Secure Element (SE) 112 with encrypted data in some brands ofsmartphones, while in other smartphones this data is in a normal memoryor is not present. SE 112 contains user financial data, includingaccount numbers, encryption keys, tokens, authentication data, etc. Ageneral memory 114 is also provided, along with a microprocessor 118.The smartphone includes four antennas: a cellular antenna 118, a WiFiantenna 120, an NFC antenna 122 and a mag stripe emulator antenna 124.Physically, these antennas may share components in some embodiments.

Memory 114 includes a payment application 126. Using the paymentapplication, a user of the smart phone 110 can interact with multipletypes of terminals. In particular, a magstripe reader terminal 128, amagstripe and chip reader 130, and a contactless reader 132. Magstripeemulation antenna 124 will be used to interact with terminals 128 and130, while NFC antenna 122 will be used to interact with contactlessreader terminal 132.

The terminals are connected to a merchant server 134 which in turncommunicates over a network, such as the Internet or atelecommunications network, to an acquirer server 136. Acquirer server136 is connected through a financial network 138 to an issuer server140. In operation, magstripe and other data received by the terminals isprovided through the merchant, acquiring and financial network to theissuer server. The issuer will then send a response, either authorizingor not authorizing the transaction, back through the financial network,acquirer and merchant to the terminal. Also, issuer 140 may communicatethrough a telecommunications network 142 to smart phone 110 to requestadditional information, such as with a challenge-response, in connectionwith a transaction authorization. The response would return using eithercellular antenna 118 or Wi-Fi antenna 120, through thetelecommunications network 142 to issuer server 140.

Mag Stripe Terminals

FIG. 2 is a flow chart illustrating the interaction with mag stripeterminals and issuers according to one embodiment of the invention. FIG.2 shows actions taken by a user device 202, a merchant terminal 204 withmagstripe capability and an issuer computer 206. It will be understoodthat there are intervening steps to traverse the networks shown in FIG.1, and other steps, but these are not included in FIG. 2 for sake ofclarity. User device 202 will have a payment application downloaded toit. For example, the user device can be a smart phone, tablet or otherdevice. When the user desires to make a payment, the user will activatethe payment application on the user device. The payment application willdetect activation by the user in step 208. In response to theactivation, a message is assembled including magstripe data, a uniqueservice code, and additional data. This additional data in oneembodiment is a dynamic authentication value. The data is then sent overan emulated magstripe antenna (step 210). As shown, the data includesthe magstripe data 212, service code 214 and additional authenticationor other data 216. This data is received by the merchant magstripereader (step 218).

As described above, a legacy magstripe reader will simply read andforward the read data 220 to issuer computer 206 through the merchant,acquirer and financial network is shown in FIG. 1. A new model readerwhich includes both magstripe and chip capability will check the servicecode to see if it begins with a two, indicating a chip enabled card.Since the service code does not begin with the two, it will not displaya prompt for the user to insert a chip card.

Issuer computer 206 will receive the read data 220 and perform anynecessary decryption, including decryption of a token (222). The servicecode within will be detected (224). Upon recognizing that the servicecode indicates a user device with chip capability, the additional chipdata will be read and compared to data in a stored user profile (226).Optionally, the issuer computer may additionally, or instead, send achallenge (228) over a telecommunication network 230 to the user device.

User device 202 will receive the challenge from the telecommunicationnetwork (step 232). The received challenge will be provided to thepayment application, which will then pull the requested data frommemory, which may be in a secure element (step 234). Alternately, thechallenge may require the dynamic generation of data. A response (236)is sent over telecommunication network 230 to issuer computer 206.Issuer computer 206 will then compare the response to the stored,appropriate answer (238). Issuer computer will then send anauthorization message upon a favorable comparison (240). Theauthorization message will authorize a transaction if there's a match,otherwise an authorization fail message will be sent. Upon receiving theauthorization message, merchant terminal 204 will indicate on a displayor otherwise whether authorization was successful or failed (step 242).

Contactless Terminal

FIG. 3 is a flow chart illustrating the interaction with a contactlessterminal and issuers according to one embodiment of the invention. Shownare the interactions between a user device 302, a contactless merchantterminal 304, and an issuer 306. The user device detects activation ofthe payment application by the user (308). As in FIG. 2, the magstripeand other data is transmitted using an emulated magstripe antenna (310).In the meantime, contactless merchant terminal 304 will not detect themagstripe because it does not have the magstripe reader. Instead, it isperiodically pinging any nearby card or user device with an initiationmessage (312). User device 302 will either maintain the NFC antennaactivated, or activate the NFC antenna (314). If no ping is detected,the NFC antenna will be deactivated. This step can apply equally to theprocess shown in FIG. 2. If the ping is detected (316), the magstripeemulation is discontinued (318). Instead, the chip data is transmittedusing the NFC antenna 122 of FIG. 1 (320).

Contactless merchant terminal 304 will receive the chip data and forwardit to the issuer (322). Issuer 306 will receive the data and compare itto be stored data (324). In particular, the chip data can include adynamic value, such as a dynamic card verification value (dCVV) or anapplication transaction counter (ATC). The user device and issuer bothcalculate a dynamic value from the same user data. Upon detecting amatch, issuer 306 provides an authorization message (326) to merchantterminal 304. Optionally, a challenge can be sent over thetelecommunications network as in the process of FIG. 2.

In one embodiment, other dynamic authentication values can be providedin the chip data. For example, the time and amount of the lasttransaction can be provided. Alternately, or in addition, the merchantfor the last transaction can be provided, or the location of the currenttransaction can be provided. The issuer can then challenge the userdevice over the telecommunications network for its current location tocompare. Optionally, in addition to receiving and evaluating the dynamicauthentication data, the issuer can send a challenge to the user deviceas in the process of FIG. 2.

FIG. 4A illustrates a sample mag stripe track 2 layout, as modified byan embodiment of the present invention. A PAN field 402 includes thePrimary Account Number, or a token. This is followed by an expirationdate field 404. Next is a 3 digit service code 406. In one embodiment,the service code begins with a 3, or another number other than 1 or 2.Alternately, the last two digits of the service code can be used toindicate chip capability. Issuer discretionary data field 408 follows.This includes a dCVV, APC, or other dynamic value.

Transit Terminal

FIG. 4B illustrates an embodiment using a transit terminal. A userdevice 410 wirelessly communicates with a card terminal in a turnstile412. Like the contactless terminal process described in FIG. 3 above,the user device will be pinged by the terminal and will respond asdescribed in FIG. 3. However, authorization will either be local, orwill not occur until the user reaches an exit turnstile. In oneembodiment, if the user device is authorized, no action is taken.Alternately, the authorization is sent through the telecommunicationnetwork to the payment application on the phone. The authorization codewill be appended to the data sent to the exit terminal at the exitturnstile. If the user device is not authorized, the user token, PAN, orother identifier is added to a blacklist that is downloaded to all theexit terminals reachable from the indicated entry terminal, or a centraldatabase accessible by those terminals, either locally or remotely.Then, upon the user attempting to exit, the exit turnstile can quicklydetermine it is not allowed. Alternately, a non-authorization is sent tothe payment application, or simply the absence of sending anauthorization prevents the user from exiting.

According to some embodiments, embodiments of the present disclosurefacilitate a payment device such as a mobile phone for use in aturnstile at a transit system. For example, a consumer presents his orher phone to the turnstile. In some embodiments, the mobile phoneprovides the consumer's mobile phone number as part of the chip data (inthe secure element) or an identifier (that can be mapped to theconsumer's mobile phone number) to allow the back end system torecognize the consumer's mobile phone number. In some embodiments, iftokenization is performed on the consumer's mobile phone number, thetokenized information can be used to identify the mobile device forwhich the token was issued. In some exemplary aspects, the softwarerunning on the turnstile can use a white/black list as a first line ofdefense to identify blocked/allowable consumers based on their phonenumbers. Assuming that a consumer is allowed through, the turnstileinitiates an authorization request. Thus, an authentication request issent to the consumer's mobile application. The consumer's account can beput on a temporary hold until the consumer authenticates (no additionaltransaction could be conducted until that next step occurs), forexample, using a mobile app running on the consumer's mobile phone. Insome scenarios, if the consumer fails to authenticate, the consumer'saccount is put on a suspended mode and the consumer's mobile phonenumber is put on the black list. In some embodiments, the authenticationfrom the consumer involves the consumer (equivalently, a mobile walletor an app running on the consumer's mobile phone) responding with theATC within a secure element. In some embodiments, the consumerauthenticates every time a transit transaction is performed, or when theconsumer uses the mobile app for making payments to the transit system.Upon receipt of proper authentication from a consumer, the temporaryhold on the consumer's account can be released.

Alternate Embodiments

According to some embodiments, methods and systems of detecting a typeof payment device (e.g., a phone, a tablet, a chip card, a watch), basedon the provided PAN (primary account number), the tokenized accountnumber or/and a combination of service code, dVCC and ATC is disclosed.(As will be understood, the dVCC is typically a function of ATC, a key,and a PAN.) Such detection can, for example, be performed by an issueror a payment network (e.g., VISA or MASTERCARD). In some aspects, thisinvolves the issuer/payment network pre-assigning codes and/or rules toidentify to a type of payment device, and then determining, based on thedVCC and Service Code, a type of payment device. For example, if theissuer/payment network determines (e.g., based on transmissions from thesecure element in the payment device) that the tokenized Primary AccountNumber corresponds to a MST transaction, and the key inside the secureelement is a particular value (say “125” for a phone), a “127” for atablet, etc.), then the payment device is a phone. This is an importantinformation as now the Service Code could be coded with preassignedvalues that would indicate the form factor or type of the paymentinstrument used in the payment transaction. Given the limitation on thedata fields, the Service Code would be implicitly indicating the set ofkeys to be used for verifying the dCVV as well as tracking thetransaction counters (e.g., ATC) based on the form factor or type ofpayment instrument. Similarly, if the issuer/payment network determines(e.g., based on transmissions from the secure element in the paymentdevice) that the tokenized Primary Account Number corresponds to a MSTtransaction, and the key inside the secure element is a particular value(say “127” for a tablet), whether the payment device is a tablet.

According to some embodiments, a method of enhancing the security of atransaction is disclosed. For example, the back end (i.e., theissuer/payment network) can inform a mobile wallet (and, accordingly, aconsumer) that a transaction has been completed. Such a functionalitycan involve programming the secure element within a payment device. Insome exemplary aspects, a mobile wallet can, in response, inform theback end with the ATC value and a time of the transaction. In someexemplary aspects, unless a mobile wallet responds back to the back end,no additional transactions are allowed to be performed. The mobilewallet, as can be understood, can be a part of the Operating System of aconsumer's mobile device. In some other scenarios, the mobile wallet canbe a mobile app running on the consumer's mobile device.

In some embodiments, a mobile wallet can initiate a notification of atransaction to the back end. The notification can include additionalinformation. For example, a mobile wallet can inform the back end alocation and a time of a transaction. Generally speaking, a mobilewallet can inform the back end with a context associated with thetransaction. Thus, an issuer or a payment network can detect movement ofthe consumer vis-à-vis a location of the transaction. In some aspects,in addition to informing the back end of a transaction, a mobile walletcan encrypt and sign the data being transmitted to the back end. In someaspects of the present disclosure, the signature is based on acryptographic key which depends on a context and/or the ATC. In someembodiments, the back end can ping the mobile wallet for additionalinformation, e.g., similar to a challenge/response scenario. Forexample, the back end can pose a challenge to the mobile wallet forproviding the signature of the previous two transactions performed.Unless the mobile device responds back to the back end with the correctinformation, no additional transactions are allowed.

FIG. 1 through FIG. 4B illustrate several exemplary methodologiesassociated with embodiments of the present disclosure. Embodiments ofthe present disclosure include various steps and operations, which havebeen described above. A variety of these steps and operations may beperformed by hardware components or may be embodied inmachine-executable instructions, which may be used to cause ageneral-purpose or special-purpose processor programmed with theinstructions to perform the steps. Alternatively, the steps may beperformed by a combination of hardware, software, and/or firmware. Assuch, FIG. 5 is an example of a computer system 500 with whichembodiments of the present disclosure may be utilized. According to thepresent example, the computer system 500 includes an interconnect 510,at least one processor 520, at least one communication port 530, a mainmemory 540, a removable storage media 550, a read only memory 560, and amass storage device 570.

Processor(s) 520 can be any known processor. Communication port(s) 530can be or include, for example, any of an RS-232 port for use with amodem-based dialup connection, a 10/100 Ethernet port, or a Gigabit portusing copper or fiber. The nature of communication port(s) 530 may bechosen depending on a network such a Local Area Network (LAN), Wide AreaNetwork (WAN), or any network to which the computer system 500 connects.

Main memory 540 can be Random Access Memory (RAM), or any other dynamicstorage device(s) commonly known in the art. Read only memory 560 can beany static storage device(s) such as Programmable Read Only Memory(PROM) chips for storing static information such as instructions forprocessor 520.

Mass storage device 570 can be used to store information andinstructions. For example, hard disks such as the Adaptec® family ofSCSI drives, an optical disc, an array of disks such as RAID, such asthe Adaptec family of RAID drives, or any other mass storage devices maybe used.

Interconnect 510 can be or include one or more buses, bridges,controllers, adapters, and/or point-to-point connections. Interconnect510 communicatively couples processor(s) 520 with the other memory,storage, and communication blocks. Interconnect 510 can be a PCI/PCI-Xor SCSI based system bus depending on the storage devices used.

Removable storage media 550 can be any kind of external hard-drives,floppy drives, Compact Disc Read-Only Memory (CD-ROM), CompactDisc-Re-Writable (CD-RW), Digital Video Disc Read-Only Memory (DVD-ROM).

The components described above are meant to exemplify some types ofpossibilities. In no way should the aforementioned examples limit thedisclosure, as they are only exemplary embodiments.

Terminology

Brief definitions of terms, abbreviations, and phrases used throughoutthis application are given below.

The terms “connected” or “coupled” and related terms are used in anoperational sense and are not necessarily limited to a direct physicalconnection or coupling. Thus, for example, two devices may be coupleddirectly, or via one or more intermediary media or devices. As anotherexample, devices may be coupled in such a way that information can bepassed therebetween, while not sharing any physical connection with oneanother. Based on the disclosure provided herein, one of ordinary skillin the art will appreciate a variety of ways in which connection orcoupling exists in accordance with the aforementioned definition.

The phrases “in some embodiments,” “according to some embodiments,” “inthe embodiments shown,” “in other embodiments,” “embodiments,” and thelike generally mean the particular feature, structure, or characteristicfollowing the phrase is included in at least one embodiment of thepresent disclosure, and may be included in more than one embodiment ofthe present disclosure. In addition, such phrases do not necessarilyrefer to the same embodiments or different embodiments.

If the specification states a component or feature “may,” “can,”“could,” or “might” be included or have a characteristic, thatparticular component or feature is not required to be included or havethe characteristic.

The term “responsive” includes completely or partially responsive.

The term “module” refers broadly to a software, hardware, or firmware(or any combination thereof) component. Modules are typically functionalcomponents that can generate useful data or other output using specifiedinput(s). A module may or may not be self-contained. An applicationprogram (also called an “application”) may include one or more modules,or a module can include one or more application programs.

The term “network” generally refers to a group of interconnected devicescapable of exchanging information. A network may be as few as severalpersonal computers on a Local Area Network (LAN) or as large as theInternet, a worldwide network of computers. As used herein, “network” isintended to encompass any network capable of transmitting informationfrom one entity to another. In some cases, a network may be comprised ofmultiple networks, even multiple heterogeneous networks, such as one ormore border networks, voice networks, broadband networks, financialnetworks, service provider networks, Internet Service Provider (ISP)networks, and/or Public Switched Telephone Networks (PSTNs),interconnected via gateways operable to facilitate communicationsbetween and among the various networks.

Also, for the sake of illustration, various embodiments of the presentdisclosure have herein been described in the context of computerprograms, physical components, and logical interactions within moderncomputer networks. Importantly, while these embodiments describe variousembodiments of the present disclosure in relation to modern computernetworks and programs, the method and apparatus described herein areequally applicable to other systems, devices, and networks as oneskilled in the art will appreciate. As such, the illustratedapplications of the embodiments of the present disclosure are not meantto be limiting, but instead are examples. Other systems, devices, andnetworks to which embodiments of the present disclosure are applicableinclude, for example, other types of communication and computer devicesand systems. More specifically, embodiments are applicable tocommunication systems, services, and devices such as cell phone networksand compatible devices. In addition, embodiments are applicable to alllevels of computing from the personal computer to large networkmainframes and servers.

In conclusion, the present disclosure provides novel systems, methods,and arrangements for a financial instrument platform. While detaileddescriptions of one or more embodiments of the disclosure have beengiven above, various alternatives, modifications, and equivalents willbe apparent to those skilled in the art without varying from the spiritof the disclosure. For example, while the embodiments described aboverefer to particular features, the scope of this disclosure also includesembodiments having different combinations of features and embodimentsthat do not include all of the described features. Accordingly, thescope of the present disclosure is intended to embrace all suchalternatives, modifications, and variations as fall within the scope ofthe claims, together with all equivalents thereof. Therefore, the abovedescription should not be taken as limiting.

1. A computer readable medium on a mobile device having non-transitorycomputer readable code with instructions for: reading traditional magstripe data from a memory of the mobile device; updating a dynamicauthentication value stored in the memory of the mobile device;assembling, in the mobile device, the mag stripe data, dynamicauthentication value, and an indication of chip capability into a datapackage; activating a mag stripe emulation antenna of the mobile device;modulating, by the mobile device, a signal for the mag stripe emulationantenna with the data package; storing, in the memory of the mobiledevice, additional information regarding a transaction with theterminal; pulling the additional information from the memory of themobile device; and composing, in the mobile device, a message with theadditional information; and sending the message from atelecommunications antenna of the mobile device over atelecommunications network.
 2. The computer readable medium of claim 1further comprising non-transitory computer readable code withinstructions for: reading at the mobile device a received challenge froman issuer over a telecommunications network for additional information;pulling the additional information from the memory of the mobile device;and composing in the mobile device a response to the received challengewith the additional information.
 3. The computer readable medium ofclaim 1 wherein the indication of chip capability comprises a servicecode beginning with a number other than 1 or
 2. 4. The computer readablemedium of claim 1 wherein the dynamic authentication value comprises adynamic card verification value.
 5. The computer readable medium ofclaim 1 wherein the dynamic authentication value comprises anapplication transaction counter.
 6. The computer readable medium ofclaim 1 further comprising non-transitory computer readable code withinstructions for: reading a received wireless initiation message from acontactless terminal: in response to the received wireless initiationmessage, de-activating the mag stripe emulation antenna; retrieving chipdata from memory; assembling a response message to the contactlessterminal with the chip data; and sending the response message to an NFCantenna.
 7. (canceled)
 8. A method for operating a mobile devicecomprising: reading traditional mag stripe data from a memory of themobile device; updating a dynamic authentication value; providing, fromthe mobile device, an indication of chip capability; assembling the magstripe data, dynamic authentication value, and indication of chipcapability into a data package; activating a mag stripe emulationantenna of the mobile device; and modulating, by the mobile device, asignal for the mag stripe emulation antenna with the data package;storing, in the memory of the mobile device, additional informationregarding a transaction with the terminal; pulling the additionalinformation from the memory of the mobile device; and composing, in themobile device, a message with the additional information; and sendingthe message from a telecommunications antenna of the mobile device overa telecommunications network.
 9. The method of claim 8 furthercomprising: reading a received challenge from an issuer over atelecommunications network for additional information; pulling theadditional information from memory; and composing a response to thereceived challenge with the additional information.
 10. The method ofclaim 8 wherein the indication of chip capability comprises a servicecode beginning with a number other than 1 or
 2. 11. The method of claim8 wherein the dynamic authentication value comprises a dynamic cardverification value.
 12. The method of claim 8 wherein the dynamicauthentication value comprises an application transaction counter. 13.The method of claim 8 further comprising: reading a received wirelessinitiation message from a contactless terminal; in response to thereceived wireless initiation message, de-activating the mag stripeemulation antenna; retrieving chip data from memory; assembling aresponse message to the contactless terminal with the chip data; andsending the response message to an NFC antenna.
 14. The method of claim8 further comprising: reading, at an issuer computer, an authorizationrequest with mag stripe data from a merchant terminal; determining thatan originator of the mag stripe data has chip card capability from otherthan a service code beginning with a 2; accessing a user recordcorresponding to the mag stripe data; calculating a dynamicauthentication value from the user record; and comparing the calculateddynamic authentication value with a field in the mag stripe data. 15.The method of claim 14 further comprising: assembling a challenge usingdata from the user record; sending the challenge to the phone identifiedin the user record for the originator of the mag stripe data over atelecommunications network; receiving a response; comparing the responseto a correct response associated with the user record; and sending anauthorization message to the merchant terminal.
 16. A method foroperating a mobile device comprising: reading traditional mag stripedata from a memory of the mobile device; updating a dynamicauthentication value, wherein the dynamic authentication value is one ofa dynamic card verification value and an application transactioncounter; providing, from the mobile device, an indication of chipcapability; assembling, in the mobile device, the mag stripe data,dynamic authentication value, and indication of chip capability into adata package; activating a mag stripe emulation antenna of the mobiledevice; modulating, by the mobile device, a signal for the mag stripeemulation antenna with the data package; reading a received wirelessinitiation message from a contactless terminal: in response to thereceived wireless initiation message, de-activating the mag stripeemulation antenna; retrieving chip data from the memory of the mobiledevice; assembling, in the mobile device, a response message to thecontactless terminal with the chip data; and sending the responsemessage to an NFC antenna of the mobile device.
 17. The computerreadable medium of claim 1 wherein the mobile device is a phone.
 18. Thecomputer readable medium of claim 1 further comprising instructions for:storing the additional information in a secure memory element.
 19. Thecomputer readable medium of claim 18 further comprising instructions fordynamically generating the additional data in the secure element. 20.The computer readable medium embedded on a mobile device of claim 1further comprising instructions for storing the additional informationin a mobile wallet in the memory of the mobile device.
 21. The computerreadable medium embedded on a mobile device of claim 1 wherein theadditional information includes data used to identify a mobile phonenumber of the mobile device.